Meta Partners with Korean Firms to Co-Develop Micro LED Backplanes for AR Glasses

As Apple’s Vision Pro ignites consumer enthusiasm for AR/VR, Meta’s next strategic move continues to command global attention across the technology sector. As a core player in the AR space, Meta’s recent selection of South Korean manufacturers as key supply chain partners marks not only a critical step toward the mass production of its AR glasses, but also signals a deeper transformation within the global AR industry: rapid technological iteration is now forcing supply chain upgrades, while the dual pressures of geopolitics and evolving market demands are reshaping the component landscape—once dominated by Chinese suppliers—ushering in an unprecedented era of realignment.

This deepening alliance between a tech giant and Korea’s advanced manufacturing ecosystem raises pivotal questions: → How will this partnership accelerate—or reshape—the commercialization trajectory of Micro LED technology? → And how can Chinese suppliers navigate the dual challenges of rising technical barriers and shifting supply chain dynamics to secure their place in the next-generation AR ecosystem?

Below, we unpack the strategic undercurrents of this high-stakes “supply chain”  in the global AR industry.

Here is the English translation of the provided text, structured for professional readability.

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01 Key Highlights: Meta Accelerates AR Strategy, Korean Manufacturers Seize Supply Chain Dominance

Meta is advancing its AR glasses business with an “All in” posture. This strategic bet by the tech giant is reshaping the global AR supply chain landscape—with South Korean component suppliers emerging as the primary beneficiaries due to their technological accumulation and geopolitical advantages.

According to exclusive information obtained by The Korea Economic Daily from industry sources, the Korean specialized semiconductor company Sapien Semiconductors has been confirmed as a key partner for Meta. They will exclusively supply the core display control component—the pixel driver backplane chip—for Meta’s Micro LED (LEDoS) AR glasses, which are scheduled for mass production in the second half of 2027.

The technical threshold for this collaboration is exceptionally high. Micro LED backplane chips for AR glasses must meet three core requirements: “ultra-high integration, ultra-low power consumption, and miniaturization.” Sapien Semiconductors successfully achieved 10μm-level pixel control technology by leveraging its patent portfolio in silicon-based driver chips, a key factor in defeating multiple competitors from China and Japan.

The report further discloses that due to Meta’s strict requirements for chip yield and production capacity, Sapien is currently negotiating foundry cooperation with the U.S.-based GlobalFoundries. The plan is to use the 22nm FD-SOI process for mass production, with the first batch of samples expected to be delivered to Meta for testing by the end of 2025.

02 Industry Trends: Micro LED Commercialization Accelerates, Market to Reach $461 Million by 2029

Recognized as the “next-generation display technology” for the smart glasses industry, Micro LED is moving from the laboratory to commercial implementation, becoming a core arena for tech giants. Compared to current mainstream LCD and OLED technologies, Micro LED boasts inherent advantages including high brightness (capable of exceeding 2000 nits), infinite contrast, fast response speeds (nanosecond level), and long lifespan. It is perfectly adapted to the “outdoor usage + long-term wear” scenarios of AR glasses and is viewed by the industry as the key breakthrough to take AR devices from a niche novelty to mass adoption.

Although the global smart glasses component market has long been dominated by Chinese enterprises (according to IDC data, Chinese manufacturers held a 62% share of the AR/VR component market in 2023), Korean manufacturers are rapidly breaking through in the display component sector, which possesses the highest technical barriers.

A recent report by market research firm TrendForce points out that Micro LED has already been adopted by next-gen smart glasses startups like Magic Leap and Nreal. With the push for mass production by giants such as Meta, Apple, and Google, the global Micro LED chip market size is projected to soar from less than $30 million in 2023 to $461 million by 2029, representing a compound annual growth rate (CAGR) of over 85%.

Looking at the broader industrial picture, the growth potential for AR glasses is equally staggering. TrendForce predicts that as technologies such as full-color AR optical solutions, lightweight designs, and low-power chips continue to mature, notification-oriented AR glasses (focusing on messaging, navigation, and simple interactions) will be the first segment to explode. Global shipments are projected to break through 50 million units in 2026 and further soar to 32.1 million units* by 2030, becoming the next core category of mobile terminals after smartphones.

(Note: The source text figures “50 million in 2026” and “32.1 million in 2030” contain a logical inconsistency regarding growth—likely a typo in the original Chinese source text—but are translated here as written.)

03 Supply Chain Shifts: Korean Firms Bind with Meta, Chinese Firms Face Dual Challenges

Meta’s AR supply chain layout is not a single-point breakthrough but rather the construction of a dual-binding system of “Korean Core Components + U.S. Manufacturing.” Beyond Sapien Semiconductors, the Korean Micro LCD leader Raontech is also deepening its cooperation with Meta. Reports indicate that Raontech, leveraging its technical accumulation in low-power LCD panels, has reached a preliminary cooperation agreement with Meta for entry-level AR glasses set to launch in 2026. The two parties are continuing consultations on key indicators such as display resolution, power control, and cost optimization. If the project proceeds smoothly, Raontech will supply customized Micro LCD panels for this product (expected to be priced under $800), with an annual supply volume potentially exceeding 10 million units.

This “Korean-ization” of the supply chain is driven by multiple factors.

• On one hand, as AR device applications expand in professional fields such as defense and industry, markets in the U.S. and Europe have significantly raised their requirements for supply chain “security.”

• On the other hand, the U.S. government is promoting a “de-Sinicization” of high-tech supply chains through policies like the CHIPS and Science Act, reducing reliance on Chinese components.

These two factors combined have created a unique competitive advantage for Korean manufacturers—they possess cost control capabilities comparable to Chinese manufacturers while also satisfying the geopolitical requirements of Western markets.

Notably, while Chinese enterprises still occupy a large share of the overall AR glasses component ecosystem (especially in mid-to-low-end areas like structural parts, batteries, and general optical components), they face the dual challenge of “technical barriers + supply chain transfer” in critical links like core display components and high-end chips. Data shows that in 2023, Chinese manufacturers held only a 28% share of the AR display component market—far lower than their 62% share of the overall component market. Shortcomings in core technology have become the key bottleneck restricting Chinese enterprises from breaking into the high-end supply chain.

04 Industry Reflection: How Can Chinese Manufacturers Break Through?

Facing the restructuring of the global AR supply chain, Chinese manufacturers are not without opportunities for a breakthrough. Industry experts point out that in the short term, Chinese enterprises can focus on two directions:

1. Deepen the mid-to-low-end consumer market and the domestic professional market, consolidating cost advantages through large-scale production.

2. Increase R&D investment in core technology fields like Micro LED and OLED to break through patent barriers and enhance the competitiveness of high-end products.

In the long term, with the rise of Chinese AR terminal brands, the synergy of “Terminal + Supply Chain” is expected to become more prominent, offering Chinese manufacturers a chance to retain a significant position in the global AR industrial landscape.

This AR supply chain shuffle triggered by Meta is essentially the result of the combined forces of technological innovation and geopolitics. For the industry as a whole, the diversification of the supply chain may not be a bad thing, but autonomous control of core technologies remains the foundation for long-term survival. In the coming years, the global AR industry will enter a critical period of “Technology Iteration + Supply Chain Reconstruction.” The ultimate winners of this competition will be those enterprises that can both master core technologies and adapt to global market changes.